Automaker Stellantis Announces its Bold EV Plans, Will Invest $35 Billion to Electrify its Global Vehicle Lineup
【Summary】Stellantis, which is now the world’s fourth biggest automaker, said on Thursday it plans to invest more than 30 billion Euros ($35.5 billion) through 2025 on electrifying its vehicle lineup. The company is following Volkswagen, General Motors, Volvo and other global automakers that are investing billions to develop new electric vehicles.
Stellantis, which is now the world's fourth biggest automaker, said on Thursday it plans to invest more than 30 billion Euros ($35.5 billion) through 2025 on electrifying its vehicle lineup. The company is following Volkswagen, General Motors, Volvo and other global automakers that are investing billions to develop new electric vehicles.
To execute its electrification strategy, Stellantis will invest in software development and make equity investments in joint ventures to fund the development of future technologies for its vehicles.The joint ventures will range from e-powertrain and e-transmission development, battery cell development, as well as digital cockpits and personalized connected services.
Stellantis said its bold electrification strategy will be supported by five new EV battery plants in Europe and North America as it gears up to compete with segment leader Tesla, which became the world's most valuable automaker in 2020. The company will also compete with automakers like Volkswagen, General Motors and Volvo, all of which are transitioning to building only fully-electric vehicles over the next decade.
"The customer is always at the heart of Stellantis and our commitment with this €30 billion plus investment plan is to offer iconic vehicles that have the performance, capability, style, comfort and electric range that fit seamlessly into their daily lives," said Carlos Tavares, Chief Executive Officer, Stellantis.
The company's EV battery sourcing strategy is to secure more than 130 gigawatt hours (GWh) of capacity by 2025 and more than 260 GWh by 2030.
Stelantis plans to use its technical expertise and manufacturing capacity to drive EV battery costs lower, which will allow the automaker to produce more affordable, zero-emissions vehicles.
The automaker is aiming to reduce battery costs by more than 40% from 2020 to 2024, and by another 20% on top of that by 2030. This will include optimizing the overall pack, simplifying the format of the individual modules, increasing the size of battery cells and upgrading to more energy-dense battery chemistries.
The battery chemistries include a high energy-density option and a nickel cobalt-free alternative. Stellantis said the first competitive solid state battery technology is targeted to be introduced by 2026.
The automaker is targeting driving ranges for its EVs between 300-500 miles (500-800 km), along with fast charging capability of 20 miles (32 km) per minute.
Stellantis also plans to recycle used batteries.
Stellantis intends to become the market leader in low-emission vehicles with its massive investment in electrification. The automaker is targeting more than 70% of sales in Europe and over 40% in the United States to be low-emission vehicles by 2030, which includes fully electric and hybrid vehicles.
Future EVs from Stellantis will be built on one of four new modular vehicle platforms being developed by the automaker. The four platforms are designed with a high level of flexibility and will share core components to reduce costs. Each platform can support production of up to 2 million vehicles per year, the company said.
"We have the scale, the skills, the spirit and the sustainability to achieve double-digit adjusted operating income margins, lead the industry with benchmark efficiencies and deliver electrified vehicles that ignite passion," said Tavares.
The vehicle will be powered by a family of three electric drive modules (EDM) that combine the electric motor, gearbox and inverter in a single housing. The EDMs can be configured for front-drive, rear-drive, all-wheel drive and 4xe ("four by E"). The 4xe platform is used in the 2021 Jeep Wrangler.
Stellantis also plans to become a leader in commercial electric vehicles. The company said its commercial vehicle electrification rollout will extend to all products and all regions over the next three years, including the delivery of hydrogen fuel cell vans by the end of 2021.
The Stellantis brand was officially established in Jan 2021 after a merger between Fiat Chrysler Automobiles and French automaker PSA Group was finalized. The automaker's brands now include Jeep, Chrysler, Alfa Romeo, Dodge, Ram, Fiat and Peugeot.
Stellantis said that all 14 of its vehicle brands will offer fully electrified vehicles.
Originally hailing from New Jersey, Eric is a automotive & technology reporter covering the high-tech industry here in Silicon Valley. He has over 15 years of automotive experience and a bachelors degree in computer science. These skills, combined with technical writing and news reporting, allows him to fully understand and identify new and innovative technologies in the auto industry and beyond. He has worked at Uber on self-driving cars and as a technical writer, helping people to understand and work with technology.
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